The challenge to keep pace with new business record breakers
Alternative funders face a huge challenge as the number of business startups in Britain is set to break records again this year.
These businesses will need further layers of funding support as they aspire to reach their potential, says pensionledfunding.com chairman Adam Tavener.
The bumper year follows on from last year’s record of more than 581,000 new companies, which beat the previous best of 526,446, recorded in 2013, according to StartUp Britain.
Adam said: “‘The continued acceleration in the number of adults in the UK choosing to start their own business can be seen as a vote of confidence in the economic prospects for the country, but also lays down huge challenges for the SME funding sector.
“Whilst small amounts of startup capital remain relatively easily accessed, as these businesses grow and aspire to reach their potential they will need further layers of funding support.“
The StartUp Britain campaign, said the number of new companies started each year had increased from 440,600 in 2011.
Funding has been one of the biggest issues facing entrepreneurs, although there are now a series of other financing options available for those turned down by the banks, including the alternativebusinessfunding.co.uk (ABF) portal.
“It is vitally important that we, the funders, bank and non-bank, continue down the path of a collaborative lending landscape where customer outcomes are the focus, and funders seek to provide solutions even when their own products may not be suitable,” said Adam.
“Alternative business funding has been the catalyst for behaviour change in this respect and will continue campaign for the broadest possible range of funding alternatives to be made available to British business owners.”